Bonds a 'Bad Inflation Hedge' as Yields Surge, Stocks Better Long-Term Bet: Siegel

Bond yields have surged as investors realize the asset is a bad inflation hedge, Jeremy Siegel told CNBC.

"Bonds are great hedges against geopolitical risk, against financial crises, but they're very bad against inflation," Siegel said.

After the pandemic triggered a spike in inflation, traders shifted out of Treasurys, with yields now near 5%.

"Stocks in the long run — and I've done all that long-run data — are excellent long term edges against inflation. Bonds do not," Siegel said.

Though Siegel sees inflation slowing down, he warned that growing federal deficits could bring back inflation to pandemic levels.